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Free Market

"Free Market is a MTF market of foreign issues"

The Free Market is a segment of the Multilateral Trading Facility (MTF), i.e. of the market of investment instruments organized by the stock exchange pursuant to Section 69 et seq. of the Act on Capital Market Undertakings. Trading on the Free Market is open to investment instruments admitted to trading on the basis of their issuer’s request, as well as investment instruments traded on other global stock exchanges, admitted to trading without the issuer’s consent.

What instruments are traded on the Free Market?

The following types of investment instruments are traded on the Free Market:

  • Shares
  • Bonds
  • ETFs
  • Investment certificates
  • Warrants

What are the acceptance criteria?

If shares or bonds that are not traded on another regulated market are admitted to trading on the Free Market with the issuer’s consent, the request must be filed by a trading member who undertakes to prepare an annual analytical report on these investment instruments and their issuer. As regards the admission of investment instruments that are simultaneously traded on other regulated markets, the preparation of such an annual analytical report is not required. If an IPO issue is admitted, it is possible to launch conditional trading for up to 10 days prior to the commencement of regular trading on the Free Market.

Upon the admission of an issue to Free Market trading, investors are provided with acceptance of the issue on the Free Market and with ongoing information about the investment instrument and its issuer. The issuer provides this information as part of the fulfilment of the disclosure duty on the primary market and/or on the basis of the Exchange Rules; the information is available in Czech, Slovak or English.

What needs to be done to be admitted to the Prime Market?

The following documents especially need to be submitted to ensure the successful admission of an investment instrument to the Free Market:

  • Application for admission (in Czech, Slovak or English)
  • Security prospectus or information document,
  • Certificate of allocated ISIN or a similar identification code
  • Signed general agreement between the issuer and the stock exchange (for issues admitted with the issuer’s consent)
  • Proof of the registration of the issue by the Central Depository
  • certificate of incorporation in the Commercial Register or a similar foreign register
  • Memorandum of Association or Articles of Association of the issuer, or a similar document under the legislation of the issuer’s country of origin

The CEO of the stock exchange decides about the admission of an investment instrument within 10 days of the submission of the respective application.